Dubai Market Splits as Homes Surge

TDT| Manama

Email: mail@newsofbahrain.com

A striking shift is reshaping Dubai’s residential property market, as villa purchases driven by family demand soar, while investor-led apartment sales continue their upward climb.

New figures released by fäm Properties reveal that villa sales surged by 65% in value and 55% in volume in the first half of 2025 compared to the same period last year. Transactions rose from 13,135 to 20,415, while the total sales value jumped from AED 71.6 billion (BHD 7.34 billion) to AED 118.5 billion (BHD 12.15 billion).

Diverging trends

This growth points to a maturing housing split: families are fuelling the demand for spacious, stand-alone homes, while apartments remain the preferred choice for investors and younger buyers seeking long-term returns. Apartment sales rose by 21% in value and 16% in volume, reaching AED 144.2 billion (BHD 14.78 billion) across 73,573 transactions in H1 2025.

The overall residential market saw a 38% increase in total value, growing from AED 190.8 billion (BHD 19.57 billion) to AED 262.7 billion (BHD 26.95 billion), with transaction volume up nearly 23%.

All Bahraini dinar (BHD) figures are approximate, based on an exchange rate of 1 AED = 0.1025 BHD.

April sets record pace

April emerged as a standout month, witnessing a 147% surge in villa sales by value, from AED 7.8 billion (BHD 799 million) to AED 24 billion (BHD 2.46 billion). Apartment transactions in the same month grew by 42% to reach 13,736, with a value spike of 48%, reaching AED 26.8 billion (BHD 2.75 billion).

“The surge in villa transactions across most months this year highlights a growing demand for larger, family-oriented homes, a trend we’ve seen strengthen in recent years,” said Firas Al Msaddi, CEO of fäm Properties.

Apartments still strong

Despite the villa boom, apartment sales have also grown steadily. Monthly apartment deals averaged 12,262 in H1 2025, up from 10,551 last year, with an average monthly value of AED 24 billion (BHD 2.46 billion).

“At the same time, we’re witnessing sustained interest in apartments, particularly among investors and younger buyers seeking long-term value and rental yield, and this level of activity underlines consistent investor confidence in Dubai,” Al Msaddi added.

Market watchers suggest that as Dubai continues to diversify its economy and attract global talent, the twin-track growth in villas and apartments will likely continue through the second half of the year.